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CalCPA.org's Ask a CPA always has been a valuable resource for both the public and accounting professionals. Ask a CPA--www.calcpa.org/ask--taps a network of CalCPA subject-matter experts to answer questions on everything from business management to paying for college. The site just emerged from a makeover and is easier than ever to navigate, so now surfers can find the answers they're looking for more quickly. To be an Ask a CPA expert contact Bill Spaniel at bill.spaniel@calcpa.org.

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bobbycarter
Robert Carter (Member): Life Insurance Ptemiuims 3/9/2009 8:43 AM
Is there anyway to list Life Insurance Premiums for a sole proprietor, so that it is tax deductible.If not, is there any entity that would allow you to do so.This would be used as a business continuation.

ronlynn1
Ron Bowlin (Member): Claiming my deceased Father's Medical Expenses for '08 3/14/2009 4:30 PM
three-part question: My Father passed away in August of '08. I am in the process of doing his '08 tax return. His only income was company retirement and his SS benefit check.

In Dec of 2006, we moved him into a Medical Assisted Retirement Village. At that point, I transferred what money he had to a separate bank acct of mine and I basically took care his finances.

During '08, I used his money to pay approximately $15k in health care & medical expenses. Do I claim this as just regular medical expenses on his 1040 ?

I can't claim him as a dependent - right ? His retirement and SS took care of basically 80% of his month to month expenses. And besides, medical expenses can't be considered "support", correct ? If so, then I guess I COULD claim him as a dependent.

My 2nd question -- We did a 1040A for him in '07 and did not claim any of the med expenses in '07, which was about $23k. Can we go back and do an amended '07 for medical expenses only ?

3rd question - Towards the end of his 20-month illness, his funds ran out and I paid out some of my own money - it was only a few thousand.... so can I claim that on my return as medical, even though it was for him ?

Thanks,
Ron
ronlynn1
Ron Bowlin (Member): Claiming my deceased Father's Medical Expenses for '08 3/14/2009 4:36 PM
three-part question: My Father passed away in August of '08. I am in the process of doing his '08 tax return. His only income was company retirement and his SS benefit check.

In Dec of 2006, we moved him into a Medical Assisted Retirement Village. At that point, I transferred what money he had to a separate bank acct of mine and I basically took care his finances.

During '08, I used his money to pay approximately $15k in health care & medical expenses. Do I claim this as just regular medical expenses on his 1040 ?

I can't claim him as a dependent - right ? His retirement and SS took care of basically 80% of his month to month expenses. And besides, medical expenses can't be considered "support", correct ? If so, then I guess I COULD claim him as a dependent.

My 2nd question -- We did a 1040A for him in '07 and did not claim any of the med expenses in '07, which was about $23k. Can we go back and do an amended '07 for medical expenses only ?

3rd question - Towards the end of his 20-month illness, his funds ran out and I paid out some of my own money - it was only a few thousand.... so can I claim that on my return as medical, even though it was for him ?

Thanks,
Ron
Bob41
Robert Christopher (Member): phantom income 6/12/2009 7:37 PM
I work at an LLC where we have a phantom income issue because we borrowed money to pay ourselves. I presently show about 18K in the category on my K-1 for that income. Its my understanding that I will get taxed on that income as we pay back the loan or if I leave the firm. Is that right? My firm has to buy me out if I leave. Assuming I make about 175 K year, how much do i need them to give me to cover that income tax issue and have enough to pay the taxes on that money they give me to cover that tax as well. In other words, I want enough when I leave to not come out of pocket. Thanks
Marleen
Marleen (Member): Marleen : Fees and penalties on State contracts? 3/22/2013 4:28 PM
Lets say you have a monthly contract with the State of Ca. . You bill them 1000.00 per month. in 2010 during the budget crisis they did not pay you for 4 months. You still worked, you were told you are deffinately due late fees and int. So they paid July 2010's bill Jan of 2011 but no late fees or interest. Dec of 2012 they pay
the late fees from what should have been paid to the date the invoice was paid (Jan. 2011), nothing for the two year wait. Do they still own late fees and int on the late fees and interest?

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Title Annotation:WebFocusCalCPA.org
Publication:California CPA
Date:Oct 1, 2005
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